Foxconn to Invest $700 Million In India to Reduce Production Dependency on China
Foxconn, Apple’s manufacturing partner, is reportedly planning to spend roughly $700 million in a new factory in India to speed up local production, according to sources familiar with the subject, highlighting a rapid departure from China as Washington and Beijing tensions rise.
The insiders, who requested not to be identified because the information is not public, said that the facility would be built on a 300-acre site near to the airport in Bengaluru, the capital of the southern Indian state of Karnataka.
The business is also recognized for its flagship operation Hon Hai Precision Industrial Co. Several of the insiders also speculated that the plant may be used to assemble Apple’s phones and by Foxconn to manufacture components for its emerging electric vehicle sector.
Foxconn’s new Indian factory is said to be producing 100,000 jobs, adding to the company’s 200,000 strong workforce at its Zhengzhou plant. That might also be a significant development in Apple’s efforts to establish a more extensive supply chain in India.
On Friday, a number of government officials, including India’s deputy IT minister, confirmed through Twitter that the factory would be constructed shortly and will result in the creation of 100,000 jobs.
Foxconn’s Shift to India Portrays the Situation of Global Supply Chain Amid US-China Tensions
The epidemic highlighted the hazards of Apple keeping the majority of its production eggs in one basket, despite years of warnings from experts about the necessity and difficulties of lessening Apple’s dependency on China. It is reported that Apple lost one billion dollars per week due to COVID-19-related downtime at its largest iPhone production factory.
This has resulted in increased manufacturing by Apple suppliers in nations like India, Vietnam, and Indonesia.
This is one of Foxconn’s greatest single outlays in India and it highlights the fact that China might lose its position as the world’s leading manufacturer of consumer electronics if it doesn’t start competing with other countries. Suppliers in China are under pressure from Apple and other American firms to expand operations to India and Vietnam.
The global supply chain is undergoing a reevaluation in light of the pandemic and the conflict in Ukraine, which has the potential to alter the production of electronics throughout the world. To a doubt, this is a monumental development in Apple’s efforts to lessen its dependence on China. We can only speculate as to how successful this change will be for the time being.